Receiving an initial payment for each project of 50% of estimated time and product purchases and collecting the balance of these revenues within 45 days of completing each project.

General Assumptions

Year 1

Year 2

Year 3

Plan Month

1

2

3

Current Interest Rate

9.50%

9.50%

9.50%

Long-term Interest Rate

8.50%

8.50%

8.50%

Tax Rate

28.17%

28.00%

28.17%

Other

0

0

0

Key Financial Indicators

The key financial indicators focus on cash flow. There is virtually no inventory but late payments for completed jobs will be a concern. Timely billing and collection will be critical. All expenses are tracked on a monthly basis, recorded in the accounting software, and will be compared to our business plan budget.

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Start-up Summary

The following details the initial start-up expenses for Barton Interiors. Most equipment costs are office related. Sample and display costs include books, samples and resources necessary to promote furniture, fabric and other home accessory products.

Start-up

Requirements

Start-up Expenses

Legal

$500

Stationery etc.

$850

Brochures

$420

Consultants

$450

Insurance

$150

Samples and Reference Books

$3,250

Research and development

$800

Expensed equipment

$4,250

Other

$550

Total Start-up Expenses

$11,220

Start-up Assets

Cash Required

$9,780

Other Current Assets

$1,000

Long-term Assets

$3,000

Total Assets

$13,780

Total Requirements

$25,000

Start-up Funding

Start-up Expenses to Fund

$11,220

Start-up Assets to Fund

$13,780

Total Funding Required

$25,000

Assets

Non-cash Assets from Start-up

$4,000

Cash Requirements from Start-up

$9,780

Additional Cash Raised

$0

Cash Balance on Starting Date

$9,780

Total Assets

$13,780

Liabilities and Capital

Liabilities

Current Borrowing

$0

Long-term Liabilities

$0

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$0

Capital

Planned Investment

Jill Barton

$25,000

Investor 2

$0

Other

$0

Additional Investment Requirement

$0

Total Planned Investment

$25,000

Loss at Start-up (Start-up Expenses)

($11,220)

Total Capital

$13,780

Total Capital and Liabilities

$13,780

Total Funding

$25,000

Projected Profit and Loss

The following represents the projected profit and loss for Barton Interiors based on sales and expense projections for 2002 through 2004.

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Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389, Business Services--Interior Design Services, are shown for comparison. If we fail in any of these areas, we will need to re-evaluate our business model:

Gross margins at, or above, 65%.

Month-to-month and annual increases to meet the expected growth requirements.

Self-fund growth not dependant on the credit line to meet cash requirements.